It Is Generally Less Expensive to Form a Corporation Than

question 59

True/False

It is generally less expensive to form a corporation than a proprietorship because,with a proprietorship,extensive legal documents are required.

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Definitions:

Corporation's Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Liability

A financial obligation or amount owed by a company to external parties or creditors, which must be settled through the transfer of assets or services.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.

Financing Activity

Transactions involving the exchange of financial instruments, typically related to the borrowing, repaying, or raising of capital for a company.